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Collection of debts in respect of outstanding unpaid medical expenses Date: 2009-03-18

Collection of debts in respect of outstanding unpaid medical expenses within the extrajudicial dunning procedure
 
Claims of foreign hospitals and doctors with respect to the payment of outstanding unpaid medical expenses can basically be enforced by legal action in front of the competent court. The collection of debts may also take place amicably by initiating an extrajudicial dunning procedure.
 
The extrajudicial dunning procedure aims to exert pressure on the debtor and force him to effect the outstanding payments, as well as to amicably settle the conflict between the parties, in order to avoid a possible lawsuit. Although the extrajudicial dunning procedure is regulated by many legal provisions, the conditions of drafting a dunning letter are not expressly stipulated. Pursuant to the Romanian juridical literature, the Romanian Code of Civil Procedure regarding the compulsory enforcement will be considered as legal framework for drafting such a letter.
 
Thedunning letter may be conveyed to the debtor by registered letter with notice of receipt, or by a judicial enforcer. In practice, the dunning letter is transmitted in most of the cases by a judicial enforcer.Thus, the dunning letter will have an official character and will act upon the debtor more convincingly. The debtor is summoned to pay to the creditor the debt resulted from the unpaid medical expenses, within a certain term. A copy of the proof of debt – i.e. the agreement regarding the medical treatment and/or the invoice issued to the debtor– has to be rendered to the debtor. Furthermore, the dunning letter will contain an invitation for the debtor to a settlement discussion.
 
The purpose of the settlement discussions is to reach with the debtor a notarized agreement with reference to the payment of the debt or a notarized unilateral payment obligation. By the notarized form, the agreement or the payment obligation acquires a writ of execution according to the Romanian law. This means that the creditor can enforce the debt directly, with the support of the judicial enforcer without having to take action in court. Furthermore, in most cases the parties usually agree a payment by installments. Interests on late payments can be provided in the agreement, respectively in the payment obligation, as well. To secure the payment of the debt, depending on the respective amount, a pledge of movables or a mortgage may be negotiated and set up.
 
Taking into consideration that the success of the compulsory enforcement depends among other things on the availability of debtor’s goods to be executed, the debtor’s patrimony shall be establishes with the competent Romanian authorities. The purpose of the investigations is to find out possible real estates of the debtor.
The investigations for the establishment of the real estates shall be basically carried out with the Romanian Land Register and Cadastre and Real Estate Publicity Office, by searching the Land Register.
 
Should the debtor have no reaction to the summons to the settlement discussions or should the settlement discussions end without success, the claim could be further enforced by legal action.

Diana Ioana Grigoroiu, Attorney-at-Law
S.P.R.L. Radnóczy & Menzer NÖRR STIEFENHOFER LUTZ
Attorneys – Tax Advisers – Auditors
28C, General Constantin Budisteanu Str., RO-010773 Bucharest
Tel.: 0040 21 312 58 88
Fax: 0040 21 312 58 89
Web: www.noerr.com 

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